The manager of MN Company give you the following data to pre

The manager of MN Company give you the following data to prepare the requieed parchases for the coming March) taree montls (Classuary Feenuary and Estimated sales for January Sales increase by Cost of goods sold (CGS) Beginming nventory Ending vetory epual to Find the total purchases needed for March 100.000 5% for the corang er months 60% of sales 12.000 20% of next mooch CGS Selected Answer 2 betveen $63,000 and 64 000 Question 13 Vatliable manufacturing costs per uni Varlable administrative Variable cests Selling price per wn Selected An 52 22

Solution

Question 12 Cost of goods sold=Beginning inventory+purchases-ending inventory Purchases=Cost of goods sold+ending inventory-beginning inventory Cost of goods sold=60% of sales Sales for march=100000*[(1+0.05)*(1+0.05)]=110250 Cost of goods sold=110250*60%=66150 Ending inventory=20% of next month cost of goods sold Sales for april=110250*1.05=115762.50 Cost of goods sold for april=115762.50*60%=69457.5 Ending inventory=69457.50*20%=13891.50 Beginning inventory for mach=Ending inventory for february Ending inventory for february=20% of march month cost of goods sold=66150*20%=13230 Beginning inventory for mach=Ending inventory for february=13230 Required purchase for march=66150+13891.50-13230=66811.50 Question 13 Variable cost per unit=variable manufacturing cost per unit+variable administrative cost per unit=5+2=7 Variable cost=75% of sales Selling price per unit=Variable cost/0.75=7/75%=$9.33 per unit